CVC Capital to buy Marathon Asset Management in $1.2B US credit push

Private equity firm CVC Capital has agreed to acquire 100% of US-based Marathon Asset Management in a transaction valued at up to $1.2 billion, marking a major expansion of its credit business in the United States.

The Jersey-based firm said on Monday that the deal is expected to close in the third quarter of this year, subject to regulatory approvals.

Under the terms of the agreement, the initial consideration comprises around $400 million in cash and up to $800 million in CVC equity.

The transaction also includes an earn-out linked to Marathon’s financial performance between the 2027 and 2029 financial years, which could add up to a further $200 million in cash and $200 million in CVC equity.

Expanding access to the US credit market

CVC said the acquisition significantly enhances its access to the large and fast-growing US market through Marathon’s established positions in asset-based lending, real estate credit, opportunistic strategies, and public credit.

These areas are seen as complementary to CVC’s existing strengths in Europe.

The firm highlighted its leadership in liquid credit, where it is the largest European collateralised loan obligation manager, as well as its position as a top-three player in European direct lending.

By combining Marathon with CVC Credit, fee-paying assets under management are expected to rise to approximately €61 billion following completion.

CVC added that the broader credit platform will improve its ability to scale offerings across institutional investors, private wealth clients, and insurance companies globally.

Growth ambitions and strategic priorities

The transaction supports CVC’s longer-term ambition to deliver double-digit growth in fee-paying assets under management, targeting €200 billion by 2028 across its platforms.

The firm said the Marathon acquisition, alongside its recently announced strategic partnership with AIG, strengthens its position in the rapidly growing insurance channel.

Rob Lucas, chief executive of CVC, described the deal as “highly strategic,” saying it accelerates growth and reinforces the firm’s global platform.

"Expanding credit capability in the US to complement our market-leading European platform has been a clear priority for CVC, and we are delighted to partner with Bruce, Lou, and the team," he said.

"Together, the Marathon transaction combined with our recently announced strategic partnership with AIG, means we are even better positioned to deliver for our clients across the Institutional, Private Wealth, and rapidly growing Insurance channels," he added.

Leadership continuity and rebranding

Following completion, Marathon will be rebranded as CVC-Marathon.

Co-founders Bruce Richards and Lou Hanover will continue to co-head the Marathon credit strategies, ensuring continuity of leadership.

Richards will also join CVC’s Partner Board and, alongside Andrew Davies, will be responsible for managing the combined CVC Credit business.

Richards said Marathon’s culture closely aligns with CVC’s focus on investment performance, integrity, and collaboration, adding that CVC’s global reach would create a powerful partnership.